VA disability compensation itself is a federal benefit and is not taxed by the federal government or by any state, regardless of where you live. That part of your income stays the same no matter which state you move to. What changes significantly from state to state is how veterans are treated for property taxes, state income taxes, vehicle registration fees, hunting and fishing licenses, in-state tuition, and other ancillary benefits.
Many states offer a full property tax exemption on a primary residence for veterans rated 100% permanent and total, while others offer only a partial exemption or a sliding scale based on disability percentage or income. A smaller number of states offer no property tax benefit at all for disabled veterans. Some states, like Texas, Florida, and a handful of others, also have no state income tax, which can matter if you plan to work or draw other taxable income alongside your VA compensation. Because these exemptions are set by state law and can change from year to year, there is no single authoritative federal list that stays current — the most reliable approach is to check each state's department of veterans affairs or state comptroller's office directly, since they publish the exact eligibility rules (some require the home to be your primary residence, some require you to apply annually, and some have residency or application deadlines).
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →It's also worth noting that a full property tax exemption does not automatically mean lower overall cost of living. States with generous veteran property tax breaks sometimes offset that with higher sales tax, insurance costs, or housing prices, so it helps to look at your total household budget rather than any single benefit in isolation.
Separately, your VA disability rating and monthly compensation amount do not change based on which state you live in — the rating follows you nationwide and is administered by the same federal system regardless of address. Moving does not require you to refile or re-establish your rating, though you should update your address with the VA so correspondence and the direct deposit information stay current.
As a next step, before choosing a state, contact the state veterans affairs office in two or three states you're considering and ask specifically about current property tax exemption rules for 100% P&T veterans, since these rules are state-specific and subject to change.
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